Question: The following cost formula for total purchasing cost in a factory was developed using monthly data. Purchasing cost =$123,800 + ($15 Number of purchase

The following cost formula for total purchasing cost in a factory was developed using monthly data.

       Purchasing cost =$123,800 + ($15 × Number of purchase orders)

Next month, 2,000 purchase orders are predicted. The total cost predicted for the purchasing department next month.

  a.  is $2,000.
  b.  is $153,800.
  c.  is $30,000.
  d.  is $123,800.
  e.  cannot be determined from the above formula.

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